Econ ministry reckons profit, VAT tax collections will rise after WTO accession
MOSCOW. July 2 (Interfax) - Russia's Economic Development Ministry expects an increase in the collection of taxes on profits and VAT after Russia becomes a member of the World Trade Organization, Economic Development Minister Andrei Belousov said at an expanded meeting of the State Duma committee for economic policy, innovative development and entrepreneurship devoted to Russia's joining the WTO.
"Taxes on profit [those paid into regional budgets], we presume, could even rise because we will have lower customs tariffs in primary commodities, spare parts - intermediary material," Belousov said.
From the use of these materials in the production of profits at companies could rise, and with them the tax base, he said. No estimate as to how much profit tax collections could rise, or in what regions there will be growth, has yet been done, he said. The ministry does not expect regional budgets to lose out when Russia becomes a WTO member.
"For the federal budget we will also see a few pluses associated with the fact that VAT could well rise. Because we are lowering our import duties, which will lead to an even legal playing field known to all," Belousov said. However, in the draft federal budget these figures are not as yet taken into account.
On the other hand, the budget will have built in losses associated with falling revenues from a reduction in the average level of customs duties. "In the calculations for 2015, that will be about 300 billion rubles," he said.
The pluses from joining the WTO are much more complicated, he said. They are not susceptible to simple arithmetic calculations. "For a number of sectors accession to the WTO could have a negative effect from the standpoint of economic growth. Such calculations have now been done, but in the evaluation of budget parameters they are not factored in, since everything we're doing is on the basis of a conservative forecast," Belousov said. The Audit Chamber takes a dim view of building into the budget numbers that might not materialize, he said.